Dump 50p tax rate, say businesses

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29 February 2012 Last updated at 23:32 ET

The Treasury insists the 50p top rate of tax is a temporary measure

More than 500 business leaders have called for the 50p top rate of tax to be scrapped in next month's Budget.

In a letter to the Daily Telegraph, they said it was reducing government income and damaging the economy.

The entrepreneurs accused Chancellor George Osborne of putting "populist politics before sound economics".

Mr Osborne has said the 50p rate is a temporary measure and has asked officials to assess how much extra revenue it actually brings in.

There is speculation that wealthy tax payers find ways of avoiding it.

'Awkward position'

The letter, from the owners of 537 small and medium-sized businesses, said: "Given the current state of the UK economy, we urge the chancellor to urgently consider scrapping the top rate of tax in his forthcoming Budget.

"The tax, which is in effect a 58p tax after national insurance is taken into account, puts wealth creators like us in a very awkward position.

"We believe the richest should help the poorest in society. 1% of taxpayers are forecast to contribute nearly 28% of income taxes.

"But penalising high earners through an unfair, politically-motivated tax puts populist politics before sound economics."

The letter adds: "The result is that the 50p tax is set to reduce government income and damage the economy, the public services and charitable giving."

Tricky decision

One of the signatories, Tony Stein, director at Canterbury Care, said the rate was a disincentive to job creation.

He said: "Times are hard and reducing the resources available to entrepreneurs to reinvest in new business is the wrong outcome for the country."

Business leaders are funding a campaign against the tax rate of 50p in the pound.

Last September, the campaign organised a letter signed by a group of leading economists.

BBC chief economics correspondent Hugh Pym says the decision of when to end the 50p rate will be tricky.

Some people argue that when there is a public sector pay freeze it is wrong to be helping the richest in society.

'No timetable'

Shadow chief secretary to the Treasury, Rachel Reeves, said now was not the time to do away with the 50p rate.

"When millions of families and pensioners on middle and low incomes are being squeezed by the VAT rise and cuts to tax credits, cutting taxes only for the richest 1% cannot be the right priority now," she said.

"But these business owners are right to call on the government to take action to stimulate growth and jobs in our economy.

"That's why Labour is calling on the chancellor to use the almost £1bn unspent from his failed national insurance holiday to give a tax break to all small firms taking on extra workers."

The rate, introduced by Labour, is levied on earnings above £150,000 a year.

A Treasury spokesman said: "We have said we regard 50p as temporary and have asked HMRC to report on its effectiveness. We have not set out a timetable for any change in policy."

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-17216337
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Stricken ship due in Seychelles

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1 March 2012 Last updated at 00:08 ET

Passengers on the Costa Allegra have spent three days without power

The stricken Italian cruise vessel Costa Allegra is due to reach land in the Seychelles.

The ship is being towed into the islands' main port, Victoria, by a French fishing boat.

More than 1,000 passengers are on board and the evacuation is expected to take several hours.

The ship, which lost power on Monday, is from the same fleet as the Costa Concordia, which capsized off the Italian coast in January, killing 32.

As the Costa Allegra has no power, bringing the ship alongside the dock so that passengers can be disembarked is expected to take at least two hours.

Passengers who are in the weakest medical condition will be brought off first.

Those on board have spent three days without power or hot food, with supplies flown in by helicopter.

Accommodation is being arranged, but with hotels already busy, most are expected to fly straight to Italy.

Planes are being lined up in the Seychelles to fly home passengers from the vessel as soon as possible.

The company which owns the Costa Allegra says it received its regularly scheduled maintenance in dry dock in October 2011.

Families of British passengers can call the company's emergency line on 020 7940 3300.

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-africa-17216437
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Nato 'can overcome Koran setback'

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29 February 2012 Last updated at 22:13 ET

General John Allen and US ambassador Ryan Crocker on the burning of Korans in Afghanistan

Continue reading the main story

• Tipping point?
• Taliban strength
• Taliban profile
• 'Taliban' villages

Recent protests sparked by the burning of the Koran by US soldiers were a "setback", Nato's commander in Afghanistan has told the BBC.

However, Gen Allen said Nato's co-operation with Afghan security services would continue.

At least 30 people died in the protests, including four US soldiers.

Gen Allen said he would be willing to walk unarmed into the Afghan interior ministry, where two Nato military advisors were shot dead on Saturday.

Their killer is believed to have been an Afghan police intelligence officer.

Gen Allen's comments were echoed by the US Ambassador to Afghanistan, Ryan Crocker, who told the BBC that there had been no "permanent rupture" in relations with Afghanistan.

Continue reading the main story

Timeline: Koran anger

• 20 Feb: Korans found by labourers on Bagram air base amid piles of rubbish reportedly sent to be burned
• 21 Feb: Nato and the US apologise and officials say it was not intentional, but anger escalates
• 22 Feb: Six killed in protests around the country
• 23 Feb: US President Barack Obama apologises; two US soldiers are among eight people killed in violent protests
• 24 Feb: Deadliest single day of protests as 12 people are killed
• 25 Feb: Two Nato officers shot dead by a policeman in the interior ministry; US withdraws staff from ministries
• 26 Feb: Other Nato nations withdraw staff from ministries
• 27 Feb: Nine killed in a car bomb attack at Jalalabad airport

'Reverence'

Gen Allen said he was "not surprised in the least" at the reaction to the Koran burning.

US personnel apparently inadvertently put the books, which reports say had been confiscated from terror suspects, into a rubbish incinerator at Bagram air base, near Kabul.

Muslims consider the Koran the literal word of God and treat each copy with the utmost respect.

"We have to understand the significance of the great faith of Islam to these people and we have to account for that," he said.

"But it doesn't push the relationship back," he said.

Gen Allen emphasised that over the 10 years of Nato's presence in Afghanistan, "thousands and thousands" of troops had shown "reverence" for the Islamic faith.

Asked whether those responsible for the Koran burning would be punished, Gen Allen replied: "Let's finish the investigation first."

"Should I deem it appropriate I'll recommend the appropriate disciplinary action but I'm not going to prejudge the investigation," he added.

Meanwhile, Afghan authorities are still hunting a 25-year-old Afghan policeman believed to have shot dead two senior Nato officers at the interior ministry in Kabul on Saturday.

Afghan officials named the suspect as a police intelligence officer, Abdul Saboor, from Parwan province.

The US, Britain, France and Germany have now withdrawn civilian staff from Afghan institutions. It is unclear how long the withdrawal will last.

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-asia-17216173
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Google implements privacy policy

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29 February 2012 Last updated at 21:27 ET

The new privacy policy is rolling out around the world on 1 March

Internet company Google has gone ahead with its new privacy policy despite warnings from the EU that it might violate European law.

The change means private data collected by one Google service can be shared with its other platforms including YouTube, Gmail and Blogger.

Google said the new set up will enable it to tailor search results better.

But data regulators in France have cast doubt on the legality of move and have launched a Europe-wide investigation.

Google has merged 60 guidelines for its individual sites into a single policy for all of its services.

France's privacy watchdog CNIL wrote to Google earlier this week, urging for a "pause" in rolling out the revised policy.

"The CNIL and EU data authorities are deeply concerned about the combination of personal data across services," the regulator wrote.

"They have strong doubts about the lawfulness and fairness of such processing, and its compliance with European data protection legislation."

The regulator said it would send Google questions on the changes by mid-March.

'Strong as ever'

In response, Google's global privacy counsel Peter Fleischer said he was happy to answer any concerns CNIL had.

"As we've said several times over the past week, while our privacy policies will change on 1st March, our commitment to our privacy principles is as strong as ever," Mr Fleischer wrote in a blog post.

The company rejected the regulator's request to hold off on making the changes. Users are being moved onto the new single policy shortly after midnight on 1 March, local time.

Google's business model - the selling of ads targeted around individual user behaviour - relies on collecting browsing information from its visitors.

Until today, this information was kept apart between services.

This meant a search on, for example, YouTube, would have no significance on what results or advertising you would encounter on another Google site like Gmail.

The new agreement, which users cannot opt out of unless they stop using Google's services, will mean activity on all of the company's sites will be linked.

Many websites and blogs in the technology community have given guidance for users concerned about how their browsing history will be used.

They suggest users can access, and delete, their browsing and search history on the site by logging in to google.com/history.

A similar page for YouTube viewing and search history can also be accessed.

Users can see which of Google services hold data about them by viewing their dashboard.

'Advertiser interests'

In preparation for the policy change, Google displayed prominent messages notifying visitors about the plans. A dedicated section was set up to provide more details.

Google argued that combining the policies will make it simpler for users

However, campaign group Big Brother Watch has argued that not enough has been done to ensure people are fully aware of the alterations.

A poll of over 2,000 people conducted by the group in conjunction with YouGov suggested 47% of Google users in the UK were not aware policy changes were taking place.

Only 12% of British Google users, Big Brother Watch said, had read the new agreement.

The group's director Nick Pickles said: "If people don't understand what is happening to their personal information, how can they make an informed choice about using a service?

"Google is putting advertisers' interests before user privacy and should not be rushing ahead before the public understand what the changes will mean."

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/technology-17205754
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PC shot by gunman Moat found dead

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29 February 2012 Last updated at 20:53 ET

The police officer shot and blinded by gunman Raoul Moat has been found dead at his home in Northumberland.

Northumbria Police force said PC Rathband had been discovered at his house in Blyth.

Moat shot his former girlfriend Samantha Stobbart and killed her new boyfriend Chris Brown in Birtley, in July 2010.

The next day he shot and blinded traffic officer PC Rathband, leaving him for dead on a roundabout.

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-england-tyne-17216389
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Council tax freeze plan 'flouted'

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29 February 2012 Last updated at 20:50 ET

The government has provided funding for local councils to freeze tax demands

More than 40% of households in England are facing a council tax rise from April despite the government funding a freeze on bills, a survey suggests.

The Chartered Institute of Public Finance and Accountancy figures show of an average increase of £4.39 a year.

The rise is because police and fire authority precepts which form part of the total tax demand are going up.

There is a bigger average increase in Wales of £25 a year, but bills are expected to be the same in Scotland.

Principal authorities

Last year, every council in England agreed to freeze council tax in return for a share of hundreds of millions of pounds from central government.

However 15% of English councils, including 8% of "principal" local authorities (county councils, London boroughs and metropolitan and unitary authorities), are increasing council tax.

According to the survey 43% of households will see their annual bills go up, often by a few pounds.

That is because the requirement of local police and fire authorities - called the precept - is added to the bill.

The survey shows that 85% of councils in England are freezing council tax.

Of those authorities increasing tax, none are raising it by more than 4%.

Across England, the average Band D council tax bill will increased by £4.39 (0.3%), compared with last year's average which was a decrease of 35p.

'Kick in teeth'

The survey also showed that there are disparities between regions.

The largest average increase for a Band D bill is in the North East where it will rise by or £13.43 (0.3%) while London will see a decrease of £4.19 (0.3%).

Last month, Communities Secretary Eric Pickles said raising council tax would be a "kick in the teeth" for hard-working households.

He blamed Labour-controlled local authorities for increasing bills despite the money on offer to councils that promised a freeze.

But several Conservative councils also said they would put up council tax to avoid an even bigger increase next year.

A Labour spokesman said: "Eric Pickles' plans actually mean that council tax will increase for low-paid workers next year.

"And this year Tory citadels like Surrey, Peterborough and Chelmsford are already putting up their council tax."

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-17215873
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US welcomes N Korea nuclear move

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29 February 2012 Last updated at 20:06 ET

US Secretary of State Hilary Clinton said North Korea's move was a "step in the right direction"

The US has welcomed North Korea's pledge to suspend uranium enrichment, as well as nuclear and long-range missile tests.

The White House spokesman Jay Carney said the move was a "positive first step" toward denuclearisation of the Korean peninsula.

The move follows talks between US and North Korean diplomats in Beijing last week.

In return, the US has announced 240,000 tonnes of new food aid for the North.

North Korea confirmed the suspension in a foreign ministry statement released in Pyongyang on Wednesday.

It said they were "aimed at building confidence for the improvement of relations" between the two countries, and said talks would continue.

The US State Department said Pyongyang had also agreed to allow UN inspectors to monitor its reactor in Yongbyon to verify compliance with the measures.

"These are concrete measures that we consider a positive first step toward complete and verifiable denuclearisation of the Korean peninsula in a peaceful manner," Mr Carney said.

Continue reading the main story

Analysis

Adam Brookes BBC News, Washington

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In Washington, the feeling among officials and analysts is that this is a useful but limited step forward.

Having inspectors on the ground in North Korea will, they believe, be very useful, but the optimism is coloured by a sense that promises like these have bloomed and withered many times in the past.

For Mr Obama, the agreement reduces the chances of a serious North Korean nuclear crisis during his re-election year.

And what do the North Koreans get? They will receive shipments of "nutritional assistance" for a hungry population weeks before a politically important celebration - the anniversary of Kim Il-sung's birth.

One crucial area not addressed, we're told: uranium enrichment facilities which may exist outside Yongbyon. US analysts remain worried that North Korea possesses as yet undiscovered centrifuges.

In all, the agreement - if it sticks - may help the chances of a resumption of comprehensive denuclearisation talk.

"But obviously they need to be followed up by actions. So, we will pursue this policy area with that approach in mind," he added.

The move comes two months after Kim Jong-un came to power following the death of his father, Kim Jong-il.

Correspondents say it could pave the way for the resumption of six-party disarmament negotiations with Pyongyang, which last broke down in 2009.

'First step'

US Secretary of State Hillary Clinton said the US still had "profound concerns" over North Korea, but hailed the development as a "first step".

Yukiya Amano, director general of the UN International Atomic Energy Agency (IAEA), said the announcement was "an important step forward" and that inspectors stood ready to return to North Korea, Reuters reports.

Earlier, a senior US military official had said the issue of food aid for North Korea was now linked to political progress - contradicting earlier policy.

The North has suffered persistent food shortages since a famine in the 1990s, and relies on foreign aid to feed its people.

North Korea agreed in 2005 to give up its nuclear ambitions in return for aid and political concessions, as part of a six-nation dialogue process involving the two Koreas, the US, China, Russia and Japan.

But progress on the deal was stop-start, and the agreement broke down in 2009.

Contact between the US and North Korea aimed at restarting the talks began in July 2011.

Last week's meeting between US and North Korean officials in Beijing was the third round of talks aimed at exploring how to bring North Korea back to the negotiating table.

01 Mar, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-asia-pacific-17215805
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